Electronics Production | August 13, 2012
Nortech Systems shows 'stability'
Nortech Systems Incorporated reported net sales of 28.0 million USD for the second quarter ended June 30, 2012, compared with net sales of 27.8 million USD for the second quarter of 2011.
Operating income for the second quarter of 2012 was $319,000, compared with $339,000 for the second quarter of 2011. The company reported net income of $126,000, or $0.05 per diluted common share for the second quarter of 2012, compared with $146,000, or $0.05 per diluted common share, for the second quarter of 2011. For the six months ended June 30, 2012, Nortech Systems reported net sales of $56.4 million, compared with $56.8 million for the same period in 2011. Operating income for the first six months of 2012 was $647,000, compared with $626,000 for the same period in 2011. Net income for the six-month period ended June 30, 2012, was $249,000, or $0.09 per diluted common share. This compares with net income of $264,000, or $0.08 per diluted common share, reported for the same period in 2011, before a non-operating gain related to its latest acquisition. With the non-operating gain, the company reported net income of $772,000, or $0.28 per diluted common share, for the first six months of 2011. “Our revenue results show stability while facing ongoing economic headwinds,” said Mike Degen, Nortech Systems’ president & CEO. Analysts covering the EMS industry have described the 2012 outlook as “uncertain” and “lacking direction”, without any clear, industry-defining trends. Growth forecasts are mixed, echoing the diverse signals Nortech Systems is receiving from its broad customer base. “In the short-term, however, we’re carrying excess capacity that impacts our profitability,” Degen stated. “Strategically, we’ve positioned ourselves for long-term growth through synergistic acquisitions and efficiency improvements.” He added that Nortech remains committed to executing business fundamentals and leveraging its resources prudently in light of customer demand.